Insights: Borrower Support Report – Stop Loan Sharks Initiative 2024

Summary
This report, prepared by the England Illegal Money Lending Team (IMLT), provides insights into the experiences and support needs of borrowers impacted by illegal money lenders ("loan sharks"). It examines borrower demographics, the impact on mental health and financial well-being, and outlines strategies to support victims, including engagement with community partners and debt advisory services.
Key Take Aways

Borrower Demographics: 59% female borrowers; 67% of households earn under £20,000 annually.
Housing: 49% live in social housing, while 13% own homes.
Mental Health Impact: 93% of borrowers report severe anxiety, depression, or stress due to loan shark debt.
Vulnerability: 40% of borrowers considered or attempted suicide while dealing with illegal debt.
Common Borrowing Reasons: Household bills, food, and fuel are primary drivers of borrowing, with 20% specifically borrowing for utilities.
Debt Scale: Median loan shark debt is £6,100, with repayments often exceeding doubl...